Cause For Celebration: Online Ad Spending Falls Just 5%

Online ad spending fell 5% to $5.5 billion during the first quarter of 2009, marking the first year-over-year decline for any quarter since 2002, according to new data released Friday by the Interactive Advertising Bureau and PricewaterhouseCoopers.That total also reflects a drop of about 10% from the $6.1 billion spent in the fourth quarter, when ad dollars tend to rise in connection with the holiday shopping season. Many industry forecasts have predicted single-digit growth for online ad spending in 2009, but if the current pattern continues, those projections may soon begin to look overly optimistic.

Trying to cast the ad decline in the best possible light, the IAB stressed that the Internet has not been as severely affected as other media in one of the worst ad marketplaces in decades. “Current economic conditions are clearly challenging,” said David Silverman, a PwC assurance partner, in a statement. “Nonetheless, interactive media continues to consume a larger piece of the overall advertising pie.”